Dutch based internet retailer granted provisional moratorium

Benelux Managing Director Ernst Bokenkamp told Deutsche Presse- Agentur (dpa), Wednesday that this is in accordance with Dutch Law and is the result of a decision by the Amsterdam Court. Bokenkamp explained that LetsBuyIt had requested a provisional moratorium, in order to allow the company to focus on new investment. It was granted last Friday and was limited until March. According to Bokenkamp it might be extended.

"We wanted to create a breathing space to find new partners or raise new capital, while we still have the cash to keep staff working to find a solution. I think it is a wise and realistic step." He added that according to Dutch Law, trustees will be appointed by the Court to countersign contracts and monitor the company's activities and that together with management, they will investigate the current situation and devise a plan to resolve the current financial difficulties.

Bokenkamp says that LetsBuyIt N.V. is actually on schedule with its original projections of 1999 and that the company still expects to be profitable, by 2003. "Cash is declining and we thought it best to act, before it's too late." Therefore they requested the moratorium, which freezes the situation, including all creditor claims.

LetsBuyIt.com has "more than 1.1 million users", according to Bokenkamp, in 14 European countries. The company was originally started in Sweden and is now based in Amsterdam, with principal management offices in London.

(dpa)